2026-01-15 01:51:01

The Japanese Yen plummeted to an 18-month low, and US Treasury Secretary Janet Yellen suddenly made a move. Recently, this gentleman met with Japanese Finance Minister Shunichi Suzuki, and their words were all about: with such volatile exchange rate fluctuations, just issuing statements won't solve the problem.

This stance seems mild on the surface but hides a deadly threat. On one hand, it signals the green light for the Bank of Japan to intervene in the exchange rate; on the other hand, it says—don't mess around, you need hard currency. What is this hard currency? Rate hikes.

Currently, the Bank of Japan has pushed interest rates to 0.75%, but this pace is too slow. The logic from the US side is clear: the yen is so cheap because interest rates are too low. Why isn't capital flowing into Japan? No returns. Only by raising interest rates can money stay, and the exchange rate stabilize.

From a market perspective, this is US pressure. Since they said "excessive volatility is not acceptable," Japan will definitely need to act in the short term. Short sellers might exit, and the yen could rebound. But how long can this last? It all depends on whether the Bank of Japan's resolve to hike rates keeps up.

If it's just superficial, intervention will ultimately be futile—the yen will continue to depreciate. But if they truly start tightening policies, the situation can reverse. This kind of game has an impact on the entire forex market, and the crypto market should also pay attention to this macro wave.

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OneBlockAtATime

· 10h ago

The 0.75% interest rate set by the Bank of Japan is really hilarious. The US is essentially forcing a coup. Without a rate hike, the yen will continue to stay down. With such a clear macro trend, the crypto market definitely can't escape either.

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SignatureAnxiety

· 01-16 11:12

America is blatantly forcing Japan to raise interest rates. The Bank of Japan's 0.75% rate is indeed a bit weak. But the real question is—do they dare to tighten genuinely? Once they do, the Japanese economy might explode again.

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PoolJumper

· 01-15 02:19

The Federal Reserve's combination of measures is playing very skillfully. On the surface, they appear amicable but are actually exerting pressure. The Bank of Japan needs to raise interest rates or the yen will continue to decline. This move has a significant impact on the crypto circle.

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NeonCollector

· 01-15 02:18

It's the same old game from the US; Japan still has to raise interest rates obediently, or the yen will continue to fall. Looks like the bears are going to suffer this time.

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GasFeeSurvivor

· 01-15 02:18

The Bank of Japan's 0.75% rate hike pace indeed drags down the market, and this move by the US is a classic example of pulling the rug out from under others... Tightening is truly necessary, otherwise the yen will continue to depreciate.

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FarmHopper

· 01-15 02:07

The Bank of Japan's 0.75% interest rate is really laughable. The US is clearly saying, "Either raise interest rates or watch the yen continue to fall." There's no third option.

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WalletManager

· 01-15 02:01

The Bank of Japan's 0.75% interest rate is really outrageous, no wonder the US is dissatisfied. The key is whether there will be real rate hikes in the future; otherwise, it's all empty talk—when macro policies shake, the crypto market trembles along, and you must keep a close eye on on-chain fund flows.

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rekt_but_not_broke

· 01-15 02:00

The Bank of Japan's pace is really something—0.75% has already come out, and they're still lollygagging? The US side is just waiting to see the joke. When it comes to interest rate hikes, it really has to happen.

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